Skip to comments.Gloomy Forecast for States, Even if Economy Rebounds [Obamanomics is a Failure]
Posted on 07/18/2012 3:38:02 AM PDT by SoFloFreeper
The fiscal crisis for states will persist long after the economy rebounds as they confront rising health care costs, underfunded pensions, ignored infrastructure needs, eroding revenues and expected federal budget cuts, according to a report issued here Tuesday by a task force of respected budget experts.
(Excerpt) Read more at mobile.nytimes.com ...
I’d guess this is a set-up piece by the NYT’s mental midgets for the federal fascists to bail out left wing states.
The feds push the debt back to the States and the states push it back onto the counties,
Already here in Md. our great Governor Martin O’Malley has spent the teacher’s pension fund, and passed the pension liability down to the counties.
In fact O’Malley has spent all of the funds except the rescue helicopter fund ( that one was protected by the Volunteer Fire Departments, a strong voting block that even O’Malley didn’t buck).
Did you hear shmucky schumer order ben burnandyankme to “fix the economy” yesterday? ben told him that Congress has to slash spending and the size of government and raise taxes or we will crash and burn... raising taxes shows me that ben is a keynesian nightmare... but I already knew that... anyway... the dims are now going to try and shift blame of the economy from obamao onto him.
‘by a task force of respected budget experts’
the same ones who put out the-’unexpectedly’- numbers?
I would argue that the fiscal crisis for many cities and states is not really related to the current downturn. Their problem is more basic...... they fundamentally screwed up by believing that they could extract an ever increasing revenue stream from the citizens.
It never occurred to them the citizens would leave. It did not occur to them that the companies contributing to the stream would go elsewhere or merely close their doors. It did not occur to them that those remaining were essentially worthless riffraff lacking the mental or physical ability to contribute.
The basic plan they followed allowed incompetent looters to take control and implement societal change doomed from day one. Now is finally the time. The crisis is not the cause
“The feds push the debt back to the States and the states push it back onto the counties”
Well, that makes the debt problem more interesting. Here’s the question: If the states are pushing debt onto counties, is the state is giving the county the power to manage that debt as the county sees fit? Or am I being foolish in assuming that’s the case?
Here’s the kicker that gives counties a whole bunch of power that counties are not using. Federal courts have ruled that counties are sovereign government units, along with tribes and sheriffs.
As a sovereign, a county could, for example, rewrite and repudiate any debt passed onto a county by a state. For people who believe that local government is the most responsive government, here’s a chance to take back control and manage destiny for the people.
The counties in Md. do have taxing authority,and they raise it occassionally too occassionally.
I am sure withthis new burden we will see a tax increase.
I would like to see the county sue the state for the funds to finance this new burden.
Funny, they seem to overlook the fact that every state that elected a Republican Governor in 2010 has seen unemployment drop.
They also promised wages and benefits based on a rosy 8% return on investments forever.
They’re getting around 1% - oops.